Landowners who want to sell their property to the government for public use may have to prove that their land is profitable and pay taxes on it, according to a new law that has been challenged in court.
The Land (Value) Amendment Act 2019, which regulates how the government pays for land during compulsory acquisition, requires landowners to provide tax returns filed with the Kenya Revenue Authority as evidence of the income generated by the land. This means that landowners who have been holding land for speculation purposes may not get more than they bought it for if they cannot show any profit.
Furthermore, this law offers the government a range of options to compensate landowners, including providing an equivalent alternative parcel of land, making payments in installments, issuing bonds or equity shares in a government-owned entity, or employing other legally acceptable methods. Nevertheless, once the registrar notifies landowners of the government’s intent to purchase their property, they are prohibited from developing it.
A lobby group known as Haki na Sheria has initiated legal proceedings in the Environment Court in Nairobi, contending that this law is vague, discriminatory and punitive toward community landowners. The group asserts that the law disregards the cultural and social significance of community land, which may hold ancestral, pastoral, hunting or religious value.
Additionally, the group criticizes the law for leaving the determination of “just compensation” to the minister of lands. The lobby group also raises concerns about the government’s dispute resolution mechanism, where landowners dissatisfied with the government’s offer must seek recourse through the Land Acquisition Tribunal.
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However, the composition of this tribunal, comprising state appointees nominated by the lands Cabinet secretary, attorney general and the Judicial Service Commission, gives rise to worries about conflicts of interest and undue influence by the government in dispute resolution processes, thereby undermining the fairness of these proceedings.
Additionally, the absence of relevant stakeholders such as qualified appraisers in the entire process creates a significant gap in the legal framework. This omission leaves a critical aspect of land valuation unaddressed and potentially leads to inequities in compensation.
As of now, the case remains pending in the court, and it is essential to acknowledge that certain pivotal aspects of this law might have escaped scrutiny if not for the proactive actions of the lobby group in raising this matter within the judicial system. While awaiting the court’s decision, it is crucial for landowners who are contemplating selling their property to the government to exercise caution and be well-informed about the potential repercussions of this new law.
Given the complexities and potential implications involved, it is strongly advisable for these landowners to seek professional legal advice and guidance before making any decisions. Consulting with legal experts who specialize in property and land matters can help landowners navigate the intricacies of the law, understand their rights and make informed choices regarding their property dealings with the government. This proactive approach can be instrumental in protecting their interests and ensuring they receive fair treatment under the law.
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